That sounds like such a great idea. I belong to a knitting circle called 'knit together.' The name is taken from a passage in Colossians.
This is what I have asked of God for you: that you will be encouraged and knit together by strong ties of love, and that you will have the rich experience of knowing Christ with real certainty and clear understanding. For God's secret plan, now at last made known, is Christ Himself. Col 2:2
Maybe your group could work on charity projects, like chemo caps or blankets for premies.